Synthomer plc (LON:SYNT) today issued a trading update for the quarter ended March 31st, 2019.
Group performance has been consistent with expectations set out at Synthomer’s Full Year results presentation on March 4th, 2019 and our Full Year 2019 outlook remains unchanged.
Trading*
Performance Elastomers
Performance Elastomers had a solid quarter. Nitrile Butadiene Latex (Nitrile) continued to benefit from the additional 90KT of capacity introduced in Q4 2018 at our Pasir Gudang site. Good demand resulted in higher Nitrile volumes and improved unit margins relative to a strong comparative period in 2018. Styrene Butadiene Rubber market conditions remained challenging with the subdued demand seen in Q4 2018 continuing during early Q1 2019.
Functional Solutions
Functional Solutions made good progress in Q1 2019. Whilst reported volumes were lower than the strong comparative period due to the slower start to the year in Europe and the sale of 51% of our Dubai operations in July 2018, unit margins were stronger. The expansion of our Worms, Germany and Roebuck, USA dispersions facilities are on track to be commissioned in Q2 2019.
Industrial Specialities
Industrial Specialities results were in line with expectations. Compared to a strong Q1 2018, the business experienced a slower start to the year particularly in Europe but we are pleased with the improving trend during Q1, and the end of quarter exit rates.
2019 outlook unchanged
Overall, the Group continues to trade in line with the Board’s expectations, and accordingly the view for Full Year 2019 outlook remains unchanged.
